Status Update

Hu Honua expects to resume onsite operations with a full team of employees and contractors before year-end. The accelerated activity comes after Hu Honua and Honolulu-based Hawaiian Dredging Construction Company reached a settlement related to a contractual dispute between the parties.

At a forestry workshop in Hawaii earlier this summer, Dr. John R. Shelly of the University of California, Berkeley summarized the benefits of woody biomass-produced electricity derived from biomass power plants similar to Hu Honua Bioenergy as offsetting high costs for thinning forests, reducing fire hazards and wildfire potential, and contributing to landfill disposal diversion.

We have invested in a new steam turbine generator to match the +30 year expected life span of the power plant. The new 30-megawatt (net) steam turbine generator is being manufactured by Shin Nippon Machinery Co, Ltd.

Hu Honua has engaged Performance Mechanical, Inc. (PMI) as its new general contractor for work remaining on-site. PMI has extensive boiler and power plant experience with utility-grade facilities, including several installations in Hawaii. Once the contractor is on board, construction is expected to return to full staffing levels by mid-summer.

The Department of Business, Economic Development and Tourism’s (DBEDT) State Energy Office commends the Hawaii Public Utilities Commission’s (PUC) approval of the Hu Honua 21.5 MW biomass power purchase agreement on Hawaii Island. Read More

Kevin Owen has been hired as general manager and more than 20 Hawaiian Dredging and Construction Company workers and their equipment are at the facility doing clean up and site preparation which will lead to a renovated power station. There are also a dozen HHB employees.

Hu Honua Bioenergy, LLC (“HHB”) has been granted an air permit by the Hawai‘i State Department of Health- Clean Air Branch (“DOH”). HHB can now move ahead with its engineering design, construction and refurbishing of the former Hilo Coast Power Company power plant at Pepe‘ekeo on Hawai‘i Island into a modern biomass facility.

“We are pleased that the DOH has granted us the air permit,” says John Sylvia, CEO of Hu Honua. “The Hawai‘i air permit process is quite rigorous, and it is important for all stakeholders that it was done correctly. We look forward to contributing to Hawai‘i’s energy sustainability while providing economic benefits for the community”.

Hu Honua Bioenergy’s air permit application has cleared the U.S. Environmental Protection Agency (EPA), which issued a “no objection” determination to the proposed permit.

Hu Honua is working with the Hawaii Department of Health, Clean Air Branch (DOH) to finalize language of the air permit to address comments and recommendations from EPA to DOH regarding procedures and processes associated with emissions monitoring. Hu Honua will be the first of its kind of facility to be located in Hawaii and the standards governing this type of operation have been recently updated.

Hu Honua has affirmed it will meet all of these updated standards, including the latest and most stringent applicable emissions regulations that have recently been implemented—maximum achievable control technology (MACT.) Furthermore, Hu Honua’s engineering and construction contractor has provided a guaranty that the facility will meet the limits contained in its air permit application.

John Sylvia, CEO of Hu Honua, was clear that the facility is being designed to meet all the requirements. “The last thing we want is a facility which doesn’t meet its permit requirements,” he said.

Air permit timeline

Hu Honua first applied for an air permit two years ago. Following extensive air emissions modeling and engineering analysis conducted by outside experts retained by Hu Honua, during which period numerous DoH questions and information requests were addressed, a year later the DOH issued a draft permit and opened a public comment period that exceeded a month. DOH held a public hearing in September 2010 and extended the public comment period to nearly two months.

Based on the feedback from the public hearing and the public comments, Hu Honua revised and resubmitted its application in December 2010. DOH opened a second public comment period, which lasted about a month.

After further public comments, DOH and Hu Honua implemented additional modifications to the draft air permit in response to public comments. DOH sent the proposed air permit to EPA for review in May 2011.

EPA responded at the end of June, saying it had no objection to the proposed air permit being issued.

The need

As the state faces rising oil costs and a mandate to meet the Hawaii Clean Energy Initiative goals for renewables, Hu Honua’s biomass facility will be a significant contributor—24 megawatts of electricity for the Big Island grid, about 10 percent of the island’s demand. This will allow the utility to reduce the amount of power it produces from fossil fuels.

Hu Honua will also be a stable power source, not intermittent like wind. That means the utility can rely on its steady output and plan accordingly.

The facility will also bring jobs to an area that sorely needs them. During the rebuilding phase of the facility, approximately 100 construction jobs are anticipated. Once it is operating, approximately 30 fulltime, good paying jobs will be created at the facility. Another 120 indirect jobs are estimated in the timber and related industries as well.

May 24
Hu Honua has reached a settlement with HELCO... Read MoreDecember 19
HHB is moving forward on site construction and has reached a settlement with HDCC... Read MoreOctober 24
Hu Honua has recently received two shipments of specialized equipment in Hilo... Read More